When is communication complete in contracts?
An offer, its acceptance, and its revocation (withdrawal) is to be complete when it must be communicated. When the contracting parties are face to face and negotiate in person, a contract comes into existence the movement the offeree gives his absolute and unqualified acceptance to the proposal made by the offeror. Rules regarding the communication of offer, acceptance, and revocation are laid down in section 4, as follows.
The following are the rules regarding communication of offer:
1) The communication of an offer is complete when it comes to the knowledge of the person to whom it is made.
2) An offer may be communicated either by words spoken (or) written (or) it may be inferred from the conduct of the parties.
3) When an offer/proposal is made by post, its communication will be complete when the letter containing the proposal reaches the person to whom it is made.
The following are the rules regarding communication of acceptance:-
1) Communication of an acceptance is complete:- a) As against the proposer/offeror when it is put into the certain course of transmission to him, so as to be out of the power of the acceptor. b) As against the acceptor, when it comes to knowledge of the proposer.
2) When a proposal is accepted by a letter sent by post the communication of acceptance will be complete:- a) As against the proposer when the letter of acceptance is posted and b) As against the acceptor when the letter reaches the proposer.
The following are the rules regarding communication of revocation:
1) As against the person who makes it, when it is put into a course of transmission.
2) As against the person to whom it is made, when it comes to his knowledge